2019 ESG at Citi - Citigroup · ESG at Citi. The world is running out of time to tackle our...
Transcript of 2019 ESG at Citi - Citigroup · ESG at Citi. The world is running out of time to tackle our...
Looking under the Hood
Affordable Housing in the U.S.
Plus more on artificial intelligence, our global headquarters and corporate action
ESG at Citi2019 Efforts at a Glance
Driving Diversity through Data
Modern Solutions to an Age-Old Problem
Evolution of Sustainable Finance
Financing the Low-Carbon Transition
2019
Sustainable Finance
9 Financing the Low-Carbon Transition
What’s Inside
I have every confidence that, as
a company and a society, we will emerge stronger and more committed to the collective good than ever before.
— Michael L. Corbat, CEO
13 Ethical Artificial Intelligence
6 Letter from Our CEO
ESG at Citi
About This Summary
This is an Executive Summary of our
2019 Environmental, Social and Governance
Report, which covers our ESG activities and
performance for the calendar year 2019.
This summary and the full report highlight
how we bring our mission and value proposi-
tion to life through our business.
All reporting and performance data are
limited to information for the owned and
operated facilities of Citigroup Inc. and
its subsidiaries unless stated otherwise.
Additional information about Citi can be
found on our website at citi.com. For more
information on Citi’s ESG efforts, please
visit citi.com/citizenship or contact:
Global Public Affairs
Citigroup Inc.
388 Greenwich Street
New York, NY 10013
Diversity
14 Driving Diversity through Data
19 Re-imagining Our Global Headquarters
Affordable Housing
20 Modern Solutions to an Age-Old Problem
26 Our Approach to ESG
25 From Corporate Voice to Corporate Action
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At Citi, we take action to effect positive and meaningful change in our communities. Included here are examples of our impact in 2019. For a comprehensive view of our ESG priorities, read our full 2019 Environmental, Social and Governance Report.
Highlights
PAY EQUITYPublically shared our raw pay gap
in 2019 and continued transparency
around pay equity in 2020
$194 MILLION INVESTED BY THE CITI FOUNDATION in tackling youth unemploy-
ment through Pathways to
Progress
(2017-2019)
Founding signatory of the Poseidon Principles, a global framework focused on assessing and disclosing the climate alignment of financial institutions’ shipping portfolios
$150 MILLION FUND TO INVESTin socially minded startups
and companies that strive
to have a positive impact
on society launched in 2020
ESG at Citi
$1 BILLION in lending toward financial
inclusion across the globe
over the last decade
First Major U.S. Bank to endorse the Principles for Responsible Banking
Appointed new Chief Sustainability Officer to help integrate sustainability and ESG into every aspect of our business
$164 BILLION FINANCED AND FACILITATEDin environmental finance activity,
exceeding our 10-year, $100 million
goal four years early (2014-2019)
$100 MILLION LOAN GUARANTEE FACILITYalong with OPIC and the Ford Foundation, Scaling
Enterprise, which provides early-stage financing in local
currency to companies that expand access to products and
services for low-income communities in emerging markets
$6 BILLION IN LOANS FOR AFFORDABLE HOUSING PROJECTSprovided in the U.S., making Citi the largest
U.S. affordable housing lender for the 10th
consecutive year
120,000 CITI VOLUNTEERS celebrated annual Global Community Day,
participating in projects in 400 cities across
90 countries
CHARITABLE GIVING$70 million through Citi
businesses and $76 million
in charitable giving by the
Citi Foundation
LGBT+ EQUALITYJoined a group of leading
U.S. employers that support
the proposed Equality Act,
federal legislation that
would provide protections
to LGBT+ people
Read Citi’s 2019 ESG Report for more details and a compre-hensive view of our priorities
5
widespread economic distress, our society needs to find
better ways to address wealth inequality and provide more
people with affordable access to financial products and
services. Programs like Cobro Digital (CoDi), launched in
Mexico last year, have become increasingly relevant as a
means of bridging the gap between the digital haves and
have-nots. Today, CoDi is enabling more than 5.5 million
digital clients to send invoices and payments using QR codes
on their phones at no cost. Citibanamex is one of the leading
banks behind this innovative initiative and has had a leader-
ship role since its inception.
We’re also continuing to support entrepreneurs through
efforts like Scaling Enterprise, a $100 million loan guar-
antee facility and joint effort with the U.S. International
Development Finance Corporation (the former OPIC) and
the Ford Foundation. Scaling Enterprise provides early-stage
financing in local currency to companies that expand access
to products and services for low-income communities in
emerging markets. To complement our lending activities, our
new $150 million Citi Impact Fund will make equity invest-
ments in socially oriented startups and companies.
And we continue to champion philanthropic causes to
increase economic opportunity. An urgent need is to help
narrow the gap between the skills and knowledge many
young people have and what they will need in order to
succeed in this century. That’s why one of our largest phil-
anthropic focus areas is workforce development. Last year,
the Citi Foundation completed its three-year, $100 million
Pathways to Progress initiative to invest in preparing youth
for 21st century jobs, and we’ll soon expand that program
with an additional new commitment. Last year, Citi and the
Citi Foundation gave $147 million in grants and charitable
contributions.
I know that these efforts will continue and will even accel-
erate as will the time and dedication that my Citi colleagues
pledge to supporting their communities. We have committed
to build on the nearly 1 million hours of service contributed
by Citi volunteers in 2019, virtually and once we can safely
re-engage with our communities.
We also strongly believe that our most important impact
comes from our core business activities, including the
financing of critical infrastructure, affordable housing,
environmental finance and small business lending. The
economic recovery will be further strengthened by insti-
tutions’ commitments to addressing an increasingly acute
shortage of affordable housing. Last year, Citi provided
more than $6 billion in loans for affordable housing projects
in the U.S., making our firm the largest U.S. affordable
housing lender for the 10th consecutive year.
Letter from Our CEOThat businesses will ultimately be more successful
and profitable when they take into account the
broader needs of society is not a new idea. But
that principle gained new traction in the latter half
of 2019, when the Business Roundtable gave fresh
voice to it. The new statement of corporate purpose
said simply that companies should take the interests
of all stakeholders – including shareholders,
colleagues, clients, suppliers and communities –
into account when making decisions. Who could have
imagined just how urgent responsible companies’
commitment to serve the greater good would be,
less than a year later?
As I write this letter, we are in the midst of the COVID-19
pandemic, which will have a wide-ranging and long-lasting
impact on every part of the world. Our global society and
economy are being tested to an unprecedented degree.
Managing through this crisis will require the best of what
we, as a company and as a society, have to offer. I know that
the progress we have made in the past has meaningfully
contributed to our ability to weather the present storm and,
ultimately, to recover from it.
We know that this crisis is having a disproportionate impact
on our most vulnerable communities. To help mitigate
ESG at Citi
Responsibly provide financial services
Serve as a trusted partner
Create economic value
Largest proprietary global network, with a client base of 13,000 and a presence in more than 90 countries
Facilitates ~$4 trillion of transaction flows daily
Serves more than 90% of global Fortune 500 companies
Serves more than 110 million customers
Digital leader in credit cards, retail banking and wealth management across 19 markets
Strategic focus on the U.S., Mexico and Asia
Institutional Clients Group
Our approach to positive impact
Global Consumer Banking
Executing a business model that adds value to society
Reporting transparently and learning through dialogue
Taking a stand on issues that matter and driving solutions
!?
Maintaining a focus on ethical decision making and responsible business practices
Catalyzing innovation through strategic philanthropy and employee engagement
Supporting clients in more than 160 countries and jurisdictions
Digital and mobile at the core of a simpler, better client experience
Diverse workforce close to 200,000 to serve our clients and customers
More than 200 years of experience
Michael L. Corbat
Chief Executive Officer
It’s also my hope that one outcome of our present predic-
ament will be an even deeper respect for science and a
recognition of the investments in technology we will need to
make to help our world thrive in the years ahead. Innovation
will be essential as we look to confront the many other
challenges that critically impact us all – chief among them,
climate change.
Our health, our economic success and our environment
are all inextricably linked, which is why, despite the current
challenges, we must sustain our efforts to fight climate
change. In 2019, Citi exceeded our $100 billion goal to help
reduce the impacts of climate change through environmental
finance activities around the world more than four years
ahead of schedule. Still, we know much remains to be done,
quickly, and so we are as committed as ever to bringing our
resources and capacity for innovation to bear as we seize the
opportunity to even more effectively and creatively tackle
this urgent challenge.
Banks have a central role to play, both in helping people
and communities through the current pandemic and in the
ultimate recovery. At Citi, we will continue working with all
of our clients and customers – individuals, small businesses,
companies and governments around the world – to manage
the business and economic fallout of this pandemic. We
will provide the necessary support, credit and assistance
programs that people, institutions and communities will need
to rebuild.
I write this letter with the utmost humility, as I know the work
ahead will require even more focus, more dedication, more
partnership and more commitment than at any time in recent
memory. But we will use the lessons of the past and the depth
of our partnerships to guide us. I have every confidence that,
as a company and a society, we will emerge stronger and
more committed to the collective good than ever before.
I know our citizens, our companies and our governments are
resolved to do nothing less. My colleagues at Citi and I are
more than ready to help lead the way.
Citi at a Glance
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Financing the Low-Carbon Transition
Sustainable Finance
By Val Smith,
Chief Sustainability Officer
ESG at Citi
The world is running out of time to tackle our greatest challenge: climate change. According to the Intergovernmental Panel on Climate
Change, to limit global warming to below 2˚ C, we
need to reduce greenhouse gas (GHG) emissions to
net zero by 2050. And to do that, the world has to
cut GHG emissions to 45 percent below 2010 levels
by 2030. As it stands, we are not on track to meet
that goal.
When Citi launched its $100 Billion Environmental
Finance Goal in 2015, the world looked different from
the way it does today. There has been a shift, a call to
action from climate scientists, as well as from inves-
tors and stakeholder groups. When Citi reached the
goal in 2019 — four years early — I felt both pride and
apprehension. I felt pride in this achievement with our
clients and in the faster-than-expected growth in envi-
ronmental finance markets, but also felt apprehension
in knowing this progress was not enough. The need
for more aggressive action and the increased scrutiny
on the finance sector, as both a driver of climate
solutions and a keeper of climate risk, make for tough
waters for financial institutions to navigate as we are
called upon to address climate change head on.
How do we address this challenge at Citi? It starts
by acknowledging the problem. We know that econ-
omy-wide, systemic change is required. But without
a plan, our society’s transition to low carbon could
be monumentally disruptive, to the economy, to
companies and, most important, to communities.
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As the world’s most global bank and a financier of
high-carbon sectors that are both the cause and
potentially the solution to climate change, we have
the challenge and the opportunity to be the world’s
leading bank in driving the transition to a low-
carbon economy. This work is built on helping our
clients achieve their sustainability goals, measuring
and analyzing the climate risk associated with our
client portfolios, and, ultimately, helping our clients
drive down emissions through innovative and
sustainable financing solutions.
All Hands on Deck
For nearly two decades, Citi has been at the fore-
front of solutions to big environmental and social
challenges. We played a pivotal role in developing the
Equator Principles in 2003 and in working with other
banks to craft the Green Bond Principles in 2014. Most
recently, we helped to develop the Poseidon Principles
— a global framework to reduce emissions within the
shipping sector — to incentivize our clients in the mari-
time industry to decarbonize.
We’ve learned many things from these and other
efforts. One of the most critical is the value of collab-
oration. We must work with our peers and our clients
and ensure that we engage advocacy groups and
regulators. In the world’s climate war room, we need
all of these actors at the table and an all-hands-on-
deck approach to designing a low-carbon transition for
the global economy. There is simply not enough time
to wind down our current carbon-intensive economy
and then rebuild a new one driven by low-carbon
activities. We need to transition the companies we rely
on now — to help those that are responsible for GHG
emissions transform their businesses.
Our global footprint and experience in financing
both carbon-intensive and low-carbon sectors give
us a unique vantage point to see opportunities from
all sides and actively finance and advise our clients
in driving solutions for a low-carbon transition. We
recognize that our clients are at different stages in
their sustainability journey but that the finish line is
the same for everyone. We meet them where they are,
and work with them to achieve their goals using inno-
vative financial solutions. The transition will require
not just financing green activities, such as wind and
solar projects, but also helping carbon-intensive
clients move from “more brown” to “less brown” along
the path to low carbon.
Leveraging Sustainable Finance Innovations for Transition Finance
The development of sustainable financial products has
increased significantly in the last decade and contin-
ues to grow. Recently, we’ve seen some breakthrough
financial instruments that link to sustainability
performance.
For example, sustainability-linked loans, in which the
borrower’s interest rate rises or falls depending on
whether the company meets sustainability targets
that have been agreed upon with the lender, have
grown into a market valued at around $34 billion. If
a borrower meets an ambitious emissions reduction
target, the cost of credit is reduced. But if a borrower
misses its targets, it has to pay more. These loans
can help companies link their financing terms to their
ability to generate positive outcomes.
Bonds that support the UN Sustainable Development
Goals (SDG), or SDG bonds, are another example. This
is a new scalable product pioneered by the Italian
utility Enel, a leader in the renewable energy space
with an ambitious decarbonization strategy. This
US$1.5 billion bond issue is the first general corporate
purposes bond to be linked to sustainability perfor-
mance indicators. Citi acted as joint active bookrunner
on the transaction, which offers a unique step-up
ESG at Citi
In the world’s climate war room, we need all of these actors at the table and an all-hands-on-deck approach to designing a low-carbon transition for the global economy.
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feature, a one-time interest rate step-up of +25 basis
points triggered if Enel’s renewable installed energy
capacity target of 55 percent is not met by the end
of 2021. This concept of an SDG-linked bond has set a
new precedent in the international bond market and
moved the market forward in tying financial terms to
sustainability performance.
These mechanisms, as with many other sustainability
instruments that have entered the market, have their
critics, some claiming they can result in “greenwash-
ing” or are an attempt to exaggerate a company’s
environmental commitments or benefits. Forthright
disclosure and transparency in sustainable and transi-
tion finance are important in countering this concern.
But I believe that these products are a training ground
for the transformation of finance, whereby all of our
financial products are being re-imagined to accelerate
the green and transition finance that will be required
to meet the world’s ambitious 2050 climate goals.
Embracing Transformational Risk Management
In addition to transformational finance, we have to
embrace transformational risk management. The
field of climate risk assessment is undergoing rapid
advancement, as banks expand their risk management
approach to include not just their financial risk from
climate change but also a reckoning of how they
are contributing to climate risk. The recommenda-
tions of the Task Force on Climate-related Financial
Disclosures (TCFD) are revolutionizing the way banks
assess climate risk, from incorporating climate
scenario analysis to understanding how to measure
carbon associated with their client portfolio. If finan-
cial institutions are to succeed in the fight against
climate change, it will require the use of complex tools
to understand the implications of climate change on
our clients and our own institutions and the courage to
have tough conversations about the need for change.
While these efforts are gaining ground, a fundamental
challenge persists. We need to rally together – across
our competitive space and across sectors, with leaders
from the green economy and the brown economy
working together to drive solutions. However, this
collective action is not going to be possible without
public policy to lay the guardrails. Citi was an early
supporter of the Paris Agreement, and our company
has continually stated our support for pragmatic
but forward-leaning climate policy that establishes a
price on carbon, is globally interconnected, and uses
a combination of carrots and sticks to help push us
toward the future we all want.
We have many of the tools necessary to start driving
the low-carbon revolution and transition the economy
– from breakthrough financial products to clearheaded
climate risk assessment. But our success will hinge
on our ability to imagine this alternate future and
leverage these tools together, with an equal dose of
inspiration and resolve to get us there.
ESG at Citi
… protecting against biases that can be embedded in and scaled by AI is critical to its effectiveness and trustworthiness.
It’s been over 60 years since scientists coined the
term “artificial intelligence” (AI) as shorthand for their
efforts to make machines that emulate higher-order
human capabilities. Writers had long imagined robots
that could think, but it would take decades more for AI
to break out of a seesaw of rising and falling interest.
Today, AI has become pervasive across industries and drives
everything from facial recognition and natural-language
processing to real-time social media curation or medical
diagnostics. Citi and other banks are increasingly investing in,
developing and leveraging AI to enhance our use of technology,
from improving the customer experience and streamlining
customer service to strengthening anti-money laundering,
financial credit scoring and fraud prevention processes.
AI’s rapid adoption, however, has raised complicated ethical
considerations. For example, AI is increasingly used in sensitive
areas, such as hiring and criminal justice, to make processes
not only more efficient but reduce the impact of human bias.
However, the data and algorithms that drive AI are not neces-
sarily immune to bias, and protecting against biases that can
be embedded in and scaled by AI is critical to its effectiveness
and trustworthiness. As the leading global bank, Citi takes
our AI responsibilities to heart. And, as a result, in 2019, we
became one of the first private sector companies to develop
our own set of ethical principles for AI and machine learning,
which are in the final stages of review. These seven principles,
which aim to ensure effective governance, risk management
and responsible innovation in our use of AI, were developed in
partnership with colleagues from across Citi businesses and are
rooted in our mission and ethical standards set out in our Code
of Conduct.
The public sector has long taken an active interest in the
issue, and governments around the world made 2019 the
year of ethics in AI. Singapore led the way with an ethical-use
framework, soon followed by the 28-nation European Union.
Forty-two countries then signed up to a similar set of princi-
ples from the Organisation for Economic Co-operation and
Development. Faced with this growing number of national
and international efforts to set guardrails, we created our
framework — which complements our robust global processes
for technology work in general — to allow us to leverage the
incredible power of AI for the benefit of our customers and
stakeholders while keeping potential ethical risks at bay.
Spotlight
Ethical Artificial Intelligence
13
Driving Diversity through Data
Diversity
By Sara Wechter,
Global Head of Human Resources
ESG at Citi
“You can’t manage what you can’t measure,” is a well-known adage that our CEO Mike Corbat
uses often. It informs many of the business decisions
made across our firm. Diversity is no different.
And beyond just measurement, transparency is
extremely important. That’s why Citi is making good
on our commitment to disclose our continued prog-
ress on pay equity and representation.
A recently updated analysis of our unadjusted or
“raw” pay gap for women globally and U.S. minorities
found those numbers had moved slightly but in the
right direction in 2019, to 73 percent for women and
94 percent for U.S. minorities – with those numbers
at 71 percent and 93 percent, respectively, in 2018.
For us, the data reaffirms the importance of goals
we announced two years ago to increase our repre-
sentation of women and U.S. minorities in senior and
higher-paying roles at Citi. We know that is the only
effective way for us to meaningfully reduce our raw
pay gap over time.
With close to 200,000 employees around the world,
we won’t create the diverse and inclusive culture we
are striving for and increase senior-level representa-
tion through policies, goals and programs alone. We
need to tell people what we’re working toward and
encourage ownership – by employees at all levels
across the firm.
To do so, we are working with managers to help them
be intentional about how they delegate high profile
assignments so that everyone gets to do their best
work and meet their professional goals. And we
are training managers to understand unconscious
hiring bias so that we can ensure the diversity of
our teams.
15
Beyond all this, I am most excited about the work
under way to get under the hood to examine what
employees and recruits are or are not experiencing.
In 2019, we built out our people analytics and insights
capabilities to help better understand how to attract,
retain and promote top talent and provide data-driven
insights that can drive change in the makeup of
the firm.
One of our initial projects was enhancing our
employee survey, what we call Voice of Employee
(VOE), adding more questions related to experiences
and perceptions. Our VOE survey is one of the
most important tools we have in understanding our
employee experience and signals that we care about
how their experiences differ. This feedback, when
layered with the demographic information we have,
helps us understand where we need to focus.
Learning, Improving, Sharing
Recognizing that there is a gap is important, but,
effective action isn’t possible until you understand the
root cause. That’s part of why our efforts to collect
and analyze more data are so critical.
For example, we found valuable insight in a recent
attrition study of employees, based on their VOE
responses prior to leaving the company. We know that
VOE sentiment can predict attrition up to three years
in advance and, generally, the predictors are largely
the same for men and women. However, men and
women in more senior roles seem to leave for very
different reasons. Senior-level women focus on items
related to the company and leadership, while men
focus more on their relationship with their manager.
Understanding this disparity is an opportunity for
further exploration and it highlights areas where we
can focus.
In 2019, we built out our people analytics and insights capabilities to help better understand how to attract, retain and promote top talent and provide data-driven insights that can drive change in the makeup of the firm.
51%of our total employees globally are female
(101,155 people)
47%of our U.S. workforce are minorities
(29,186 people)
26%of our managing directors and directors globally are female
(2,414 people)
30%of our U.S. managing directors and directors are minorities
(1,394 people)
Workforce Diversity Highlights
ESG at Citi
This study is one of many underway and offers the
ability to either validate external research to see if it’s
true for Citi as well or glean unique insights about our
own workforce. Collecting and analyzing data give us a
better understanding of what works and what doesn’t,
which will undoubtedly improve the way we approach
diversity company-wide.
The Hidden Power of Hiring Bias
In companies around the world, managers often hire
applicants with skills similar to those of the person
who previously held the position. This strategy often
reflects hiring bias and prevents a company from
hiring individuals with new or nontraditional skillsets,
which can lead to a lack of diverse hires. The trend can
also yield hires who may be a culture match but not
a cultural add, the latter of which is more important
when it comes to driving a company’s diversity — and
success.
It’s also quite typical for managers to hire for similar-
ity — that is, unconsciously or otherwise, they look for
candidates with comparable interests, professional
and educational backgrounds, social markers and
other qualities. By favoring candidates with shared
experience, managers can blindly disregard those with
a skillset that’s more conducive to doing the job well.
To tackle these challenges, we hold unconscious
bias training sessions and host internal panels with a
diverse range of voices, all with an eye toward encour-
aging our people to institute more even-handed hiring
processes. Citi is also expanding the scope of hiring
searches, in part by stepping up recruitment efforts at
historically black colleges and universities (HBCU) in
the U.S.
In 2019, we piloted a new approach to engaging
HBCUs. We held our inaugural HBCU Innovation and
Leadership Symposium, which brought together 85
first- and second-year students from 21 historically
black colleges and universities for an introductory
experience focused on helping students of diverse
backgrounds understand financial services, gain tech-
nical skills and kick off the career planning process.
The two-day immersive experience gave participants
an opportunity to network with HBCU students from
across the U.S. and participate in workshops to share
and discuss the rich experiences of professionals
at Citi. While we would certainly like the students
Raw Pay Gap DataCiti was the first company to disclose the aggregate measure of total compensation (i.e., all men vs. all women, all U.S.
minorities vs. all U.S. nonminorities) across all employees regardless of role.
Median Pay
2018 2019
Equal Pay Better Representation Pay EquityFirm-Wide Representation Goals
Increased Representation
of women and
minorities in higher-
compensated roles
to help close the
raw pay gaps
U.S. Minorities
vs.
U.S. NonMinorities
Women
vs.
Men 40%
8%
Mid- and senior-
level female
talent globally to
Mid- and senior-
level Black talent
(U.S. only) to
+ =93% 94%
71% 73% by 2021
by 2021
17
to consider the possibility of a future with Citi, our
primary goal was to provide them with helpful tools on
their path to professional success without regard for
industry or profession.
Uneven OpportunitiesEven when underrepresented individuals join organiza-
tions, they may face a lack of opportunities compared
with their white male counterparts. The same dynam-
ics that generate hiring bias can take root as senior
leaders — again, consciously or otherwise — assign new
projects and give increased responsibility to individu-
als with similar backgrounds and experiences.
When someone doesn’t have the chance to work on
high-profile, challenging assignments, it can be diffi-
cult to build the skills and body of work necessary
for promotion.
To combat this, we are creating development plans
for high-potential female and minority employees at
all levels and especially in the middle of the organi-
zation. Various groups across the firm also invest in
development programs that not only help us cultivate
the skills of our diverse talent but provide exposure
to senior leadership and opportunities for mentorship
that can lead to advancement.
While the change we want to see in our diversity
across the firm is not immediate, these data-informed
insights are driving notable improvements toward our
ultimate end goal: a diverse community of commit-
ted and thriving employees all working together to
enhance the work of Citi.
ESG at Citi
The renovation of our global headquarters in New York
City, which began in 2015 and will be completed in
2020, has united two formerly disparate buildings into
a modern and highly sustainable 2.7-million-square-foot
campus. The re-imagining of this space is also the largest
owner-occupied renovation ever done in New York City.
Unifying the buildings, both internally and externally, while
meeting our ambitious goal to create an open plan workplace
that meets the highest standards of sustainable design, was a
challenging task.
Sustainable design is present throughout the renovation with
key aspects helping us to reach our environmental sustainability
goals, including LEED Platinum certification. We incorporated
biophilic design elements — those that draw on the principles
of nature — into the renovations and we worked to maximize
efficiency and make the space as natural as possible, which is
not only better for the environment but also beneficial to our
employees.
The new space represents an evolution from our traditional
workplace, where employees were once separated by office
doors and cubicle walls, to an open design that includes numer-
ous workspaces to accommodate different work styles and
foster collaboration. The Town Square is at the heart of this
cultural transformation, nearly the size of Grand Central’s Main
Concourse, which is the primary circulation point through which
all space is accessed.
Our commitment to our employees’ well-being was also top
of mind during the redesign. A dedicated outdoor air system
brings 100 percent fresh air into the building, which is blan-
keted in abundant natural light thanks to the open spaces.
The building also features a state-of-the-art fitness facility,
a wellness medical center, 10 Mother’s Rooms, eight medita-
tion rooms and two prayer rooms. A childcare center will be
opening in late 2020.
Last but not least, the renovation has enhanced our connection
to our local neighborhood. Previously, only a fraction of our
plaza’s 50,000 square feet welcomed the public. The plaza,
now fully accessible to the public, was re-imagined to create
an open park with varied seating, a unique water feature and
seasonal plantings. Further connecting us to the community
is our 400-plus seat auditorium, which can be reserved for
charitable programs and community events. We have also
contributed $10 million to the Hudson River Park Trust, a
longtime Citi partner, to develop a public park at Pier 26,
which is located across the street from our headquarters.
Re-imagining Our Global Headquarters
Spotlight
Select HQ Sustainability Features
30%reduction in C0
2 emissions
thanks to a gas-fired co-gen
plant that supplies nearly
half of our power needs
while capturing and reusing
the heat byproduct
12% electricity reduction
requirement through
the use of LED lighting
with sensors that adjust
to daylight and floor
occupancy
2M gallons of water
captured annually with
water retention tanks
to meet 100 percent of
irrigation needs
40%
water reduction with
plumbing fixtures such
as dual flush toilets and
faucet controls
86K+reduction in plastic
bottle usage each
month through the use
of water bottle filling
stations
Up to
19
Modern Solutions to an Age-Old Problem
Affordable Housing
By Ed Skyler,
Executive Vice President, Global Public Affairs
ESG at Citi
Changing Attitudes with Education
Research shows that developing affordable housing
units, especially in lower-income areas, can decrease
blight, lower crime and revitalize neighborhoods — all
while reducing rent in large cities and allowing more
diverse communities to grow.
At Citi, we’re trying to prevent cases of NIMBYism that
stymie the projects that yield this sort of progress
and, in the process, contribute to the nation’s housing
crisis. To do so, we’re working to shift negative
attitudes around affordable housing while support-
ing organizations and initiatives that help provide
low-income individuals with a comfortable home that
doesn’t cause a heavy financial burden.
From partnering with and funding technical assistance
for the National Fair Housing Alliance to working with
the Center for Community Progress, which tackles
on-the-ground housing challenges in large cities, we’re
trying to change attitudes through educational initia-
tives and community involvement.
We’re also working hard to support new and creative
solutions to the country’s growing affordable housing
shortage.
Finding Fertile Ground in the Sunshine State
While many would assume that New York or San
Francisco is home to the most low-income residents
who spend at least half of their income on rent, Miami
holds the unfortunate distinction. NIMBYism — paired
with high rent, large swaths of vacant land and the
growing impact of climate change — has made the city
tough to afford for working-class individuals.
That’s how many Americans believe it should be a “top national priority” to ensure everyone has a safe, decent and affordable place to live, according to the National Low Income Housing Coalition.The public opinion poll reflects an admirable collective
attitude that often isn’t demonstrated in practice.
Indeed, while most people support affordable housing
in the abstract, many oppose projects that affect
their communities directly. Opponents of afford-
able housing development in their communities (or
“NIMBY” — the moniker of those who are quick to
say “Not in my backyard”) often prevent affordable
housing initiatives and in doing so, subtly reinforce
segregation in neighborhoods and entire communities.
85%
21
That’s why Citi supports initiatives like Land Access
for Neighborhood Development (LAND), an innovative
online tool built in partnership with the University of
Miami. LAND maps about 500 million square feet of
unused, publicly owned land in the Miami-Dade area to
identify viable redevelopment opportunities, especially
those that complement the recently proposed Miami
Affordable Housing Master Plan and other housing
plans put forth by policymakers.
The tool demonstrates that, contrary to what local
officials and real estate developers have said, there
is indeed enough land available to build affordable
housing projects. We’re proud to support a technologi-
cally advanced, data-backed approach to ensuring that
there’s enough housing for all Miami residents.
Citi provided more than $6 billion in loans for affordable housing projects in 2019, making us the leading financier of affordable housing in the U.S. for the 10th consecutive year.
Housing units created
Buildings financed
Projects completed
27M square feet
65 rehab construction
80 new construction
36 permanent financing
8 acquisition
5 adaptive reuse
26.1K affordable and mixed income
6.3K senior
3K RAD
1K special needs
350 veteran
341 green buildings
984 formerly homeless
1,259 buildings
38Kapartments
financed
1941.6Kbuildings built
projects closed
ESG at Citi
critical physical and social infrastructure efforts
that improve life in communities – a focus of our
$150 million Citi Impact Fund, launched earlier this
year. Through this fund, we will invest our own capital
in double bottom line companies driving change.
What’s more, to help bring additional housing to
the communities that need it — and provide revenue
streams for homeowners in the process — Citi supports
nonprofits that promote accessory dwelling units
(ADU). These are dwellings such as basements, garage
apartments or separate free-standing structures that,
with a little love and care, can make for a safe and
Modern Solutions To fight a growing problem, Citi is supporting compa-
nies and organizations that champion cutting-edge
solutions. To that end, we provided $5 million to
Factory_OS, a new venture that builds multifamily
rental housing 40 times faster and at a 20 percent
lower cost than conventionally built multifamily
housing. Based in California, the company crafts struc-
turesthat, in addition to being well-designed and tech
friendly, represent the low-cost, high-quality future of
affordable housing. And we know that there are other
newer, smaller companies out there that are applying
innovative solutions to the housing challenge. That’s
why we made affordable housing – along with other
23
Inclusive Housing
According to the Equal Rights Center, about 50 percent
of older same-sex couples face hardship when applying
for housing. We believe that affordable housing is most
beneficial when it’s accessible to everyone, which is why
we partner with Services & Advocacy for LGBT Elders
(SAGE) to help ensure communities are better equipped
to support and build more inclusive housing for older
LGBT+ individuals. And through our partnership with
True Colors United, a nonprofit that fights LGBT+ youth
homelessness, we’re collaborating with community
groups and local governments to meet the needs of
at-risk youth.
Finding affordable housing can also be difficult for
veterans, many of whom face mental health challenges,
combat-related injuries and struggles with substance
abuse. The U.S. Department of Housing and Urban
Development estimates that about 40,000 veterans are
homeless across America. We’re trying to reduce that
number by improving veterans’ access to affordable
housing, and, in doing so, helping them transition back
into civilian life.
To that end, for the past eight years, we’ve supported
the Bring Them HOMES initiative, which finances and
advocates for affordable housing options for veterans.
Through this project, about 3,100 units have been built
or are in development for our country’s heroes.
Citi supports Bring Them HOMES
initiative, which finances and advocates
for affordable housing options for
veterans. Through this project, about
3,100 units have been built or are in
development for our country’s heroes.
comfortable home. In Washington, D.C., for example,
we work alongside the nonprofit United Planning
Organization, which teaches residents how to take
advantage of zoning requirements that allow the use
of ADUs.
Another innovative avenue for affordable housing is
adaptive reuse and Rental Assistance Demonstration
(RAD) programs, through which public housing agen-
cies can work with private organizations to invest in
public housing. In 2019, we provided financing that
enabled the creation of nearly 3,000 apartments
nationwide through RAD.
Fighting for an Affordable Future
Citi provided more than $6 billion in loans for afford-
able housing projects in 2019, making us the leading
financier of affordable housing in the U.S. for the
10th consecutive year. That’s something of which we’re
proud, but we know that providing affordable housing
options for all won’t happen overnight. We’re eager to
take the lessons we’ve learned and use them to drive
positive change across the country.
As we continue to facilitate development, make
housing accessible nationwide and push to eliminate
misinformed stigmas around affordable housing, we’re
looking forward to a future in which everyone has a
place they’re proud to call home.
ESG at Citi
We know we have a responsibility to put the strength of our business behind our corporate voice. And we must continue to challenge ourselves to think about what more we can do to actually drive solutions.
Increasingly, companies are recognizing that focusing
on social purpose and operating in the best interest of
society is critical to their long-term success. This senti-
ment has manifested, at least in part, in companies using
their voice — taking a stand on the issues that matter to
employees, clients, investors and communities.
Recent polling by the Global Strategy Group indicated that
92 percent of people in the U.S. believe that it is important for
companies to take a position on issues that are in line with their
values. For many years, that has been true for us at Citi as well,
issuing statements on a range of issues, from climate change to
wealth inequality and from diversity and inclusion to firearms.
Beyond just taking a position, 81 percent of people believe
that corporations should take action to address the important
issues facing society. For these individuals and for corporate
critics, words are promising but mean nothing if they don’t lead
to action.
At Citi, we agree. We know we have a responsibility to put the
strength of our business behind our corporate voice. And we
must continue to challenge ourselves to think about what more
we can do to actually drive solutions. For example, establish-
ing a firearms policy in the U.S. in response to gun violence;
expanding inclusive workplace policies and advocating for
LGBT+ equality; being transparent about the results of our pay
equity review and our unadjusted pay gap; and working with
the shipping industry to help reduce its carbon footprint — all of
these are actions that are driving solutions and demonstrating
our commitment to society.
Regardless of the issue, we all can agree that there’s much to
be done, and all of us need to accelerate our pace. When we are
ahead of the pack, we need to work to bring others along, and
when we’re lagging, we need to learn from our peers and push
ourselves to do more. Moving the needle on complex social
issues is no small feat. We recognize that many of the biggest
societal challenges are part of a significant economic and social
transition that will take years — in some cases generations — to
come to fruition. Corporations, though, hold tremendous power,
and that power requires that we take a leadership position and
play a meaningful role in addressing the numerous challenges
facing society today.
From Corporate Voice to Corporate Action
Spotlight
25
Our Approach to ESG
Taking a Stand on Issues That Matter and Driving SolutionsCompanies are expected to
leverage their corporate voice to
benefit society. We take a stand
on issues that matter to our
employees, clients, investors and
communities. Where we can, we
work to be part of the solutions.
Maintaining a Focus on Ethical Decision Making and Responsible Business PracticesEthical business practices are
central to the success of the
entire financial services sector.
We place significant emphasis on
understanding, improving and fully
integrating ethical and responsible
practices in everything we do.
Executing a Business Model That Adds Value to SocietyOur core businesses, and the
financial innovation that is
inspired by our drive to serve
clients and solve society’s
greatest challenges, are
fundamental to our mission to
enable growth and progress.
!?
In our full 2019 Environmental, Social and Governance
Report, we share many individual stories of progress —
how as a bank, employer and philanthropist, Citi cata-
lyzes sustainable growth — with a focus not on short-
term fixes but on broader systemic changes. Read the
full report at citi.com/citizenship.
ESG at Citi
Catalyzing Innovation through Strategic Philanthropy and Employee EngagementWe support a variety of philanthropic
causes and develop partnerships
with community organizations to
catalyze change through innovative
and efficient solutions. We increase
our impact by encouraging our
colleagues to volunteer.
Reporting Transparently and Learning through DialogueWe need to communicate what we
are doing and engage in dialogue to
understand what more can be done.
We are committed to improving our
reporting efforts and the way in
which we engage stakeholders in
all of our activities.
Sustainable Development GoalsCiti has an important
role to play in helping to
finance the SDGs and the
estimated $5 trillion to $7
trillion annual global devel-
opment need. Since 2016,
we have reported on how
our activities relate to the
seven SDGs upon which
we can have the greatest
impact, and we indicate
relevant information
throughout our full
Citizenship Report.
27
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